System-Wide Pay Plan & Overtime Regulations Information Session
Learn about the background and impact of system-wide pay plan and overtime regulations, including details on exempt vs. non-exempt classifications, salary minimum for exemption, and examples of exempt job duties. Discover the effective changes as of December 1, 2016, based on U.S. Department of Labor initiatives.
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Presentation Transcript
System-wide Pay Plan & Overtime Regulations Information Session HOSTED BY: PVAMU Office of Human Resources
TOPICS Background Current Status Impact HR Work in Progress
BACKGROUND Overtime Regulations System-wide Pay Plan U.S. Department of Labor (DOL) initiative A&M System initiative Effective December 1, 2016 Applies to most staff employees Applies to all employees May change pay to hourly Includes minimum pay rates
OVERTIME REGULATIONS Exempt vs. Non-Exempt Exempt: Paid a fixed salary on a monthly schedule No pay or comp time for extra work hours Non-exempt: Paid an hourly rate on a biweekly schedule Earn overtime pay or compensatory time for hours worked over 40 in a workweek
OVERTIME REGULATIONS (cont d) Effective December 1, 2016 Exemption from overtime is based on: Job duties tests executive, administrative, professional per federal guidelines Salary basis fixed amount Salary minimum threshold increased from $455 per week (or $23,660 annually) to $913 per week (or $47,476 annually)
EXEMPT JOB DUTIES Examples of position information and job duties that meet the criteria: Management of a department or unit Authority to hire/fire Office or non-manual work directly related to management or business operations Primary duty includes exercise of discretion and independent judgment on significant matters Requires advanced knowledge in a field of science or learning
SALARY MINIMUM FOR EXEMPTION $913 per week/$3,956.33 per month or $47,476 per year Amount applies whether employee is part-time or full-time Minimum does not apply to teachers (including faculty titles and graduate teaching assistants), lawyers, doctors, veterinarians and Extension Agents they are exempt from overtime regardless of salary level.
NOTIFICATION OF CHANGE TO A NON-EXEMPT STATUS There are two categories of impacted employees: Employees making below $47,476 (new FLSA salary) Employees in titles becoming non-exempt in the new pay plan ***Employees will be notified of changes in their exemption, if impacted, as well as supervisor and department head.
TITLES BECOMING NON-EXEMPT Initial review and recommendation by the Pay Plan Administrator (TAMUS Office), using the DOL exemption criteria, opinion letters and legal cases; System Member HR offices input and feedback; Review of assigned pay grades as well as peer institutions exemption status of certain roles; In cases where there was significant disagreement, some alternatives were discussed in terms of adding titles as options. The primary consideration when there was not agreement was risk-mitigation and consistency across System Members.
DEALING WITH CHANGE This change is not about: Lack of trust Not being a professional Demotion or punishment This change is about: Complying with federal requirements Extending overtime protection to more employees
EMPLOYEES Understand that PVAMU values our employees and what they contribute towards the university s mission of excellence in teaching, research and service. Recognize the importance of accurately recording work hours. Realize that they may need to adjust schedules and work differently.
MANAGERS & SUPERVISORS It will be essential for managers and supervisors to: Review organization of work and scheduling Oversee employee work and leave hours Balance financial stewardship with the need to get work done Understand the importance of their role in leading the way through change
DEPARTMENT ADMINISTARTORS & ADMINISTRATIVE ASSISTANTS Be prepared for a change in the number of employees on biweekly payroll vs. monthly payroll effective December 1, 2016 Be prepared for potential change in the approach to comp time vs. overtime payment Help lead supervisors and employees to resources as they become available Ask HR questions to help identify issues
RESOURCES & TRAINING Review the HR resource page with FAQs Website will be up by end of October or early November Online training and tutorials: Comp time course and timesheet tutorials for employees and supervisors available in TrainTraq and TimeTraq Additional sessions coming soon: Working time details include travel time and other associated issues
SYSTEM-WIDE PAY PLAN BACKGROUND Compensation audit recommendations Consultant was chosen to review over 9,000 job titles across the TAMUS Objective was to create single, system-wide pay plan for staff positions, with some executive-level and other titles excluded. Final plans presented to Board of Regents in September 2015 Implementation scheduled for December 1, 2016
SYSTEM-WIDE PAY PLAN - OUTCOME Standardized titles and pay structures across the A&M System for staff titles Staff positions mapped to new titles based on current classifications Employees below the minimum of the new pay range under the new System-wide Pay Plan will have their salary raised to the minimum PVAMU and other universities have been given a two-year window to raise employee salaries to the minimum PVAMU administration is working towards increasing new pay range minimums at the earliest Title changes are effective December 1, 2016 through an automated process
SYSTEM-WIDE PAY PLAN - IMPACT What employees can expect for December 1, 2016: All employees will have a change in title code (four-digit number) Most employees will have a change in job title (classification title) Communications about title changes will be sent in late October or early November
SYSTEM-WIDE PAY PLAN IMPACT What managers and supervisors can expect: Changes in staff titles and pay administration Holding off on major reorganization and titling changes until more information is available for such decisions Impact on currently posted positions More structure for many titles, flexibility in pay ranges and more guidance
SYSTEM-WIDE PAY PLAN - IMPACT HR/Payroll impacts will be: Transition period within PV TALENT for postings and reclassifications Implementation of new titles and change to biweekly will be automated
HR WORK IN PROGRESS Implementation Plans: Additional communications coming from HR to departments and employees in late October or early November Communications will include new titles New information about the new pay plan and FLSA being added to the HR website Transition wording being added to open postings about December 1, 2016 change to hourly and overtime-eligible for positions below $47,476 are otherwise non-exempt
HR - WORK IN PROGRESS (cont d) Proposed revisions to University Rules and UAPs to accommodate new pay structures and compensation philosophy Other guidance to help managers and employees through the transition
Office of Human Resources 936-261-1730 compensationteam@pvamu.edu
